In this issue:

'The Electable LaRouche' Candidate Wins Michigan Democratic Primary

EIR To Issue Third Update on McCain and Lieberman Corruption

Dick Armey Breaks Ranks— Attacks Iraq War

Lieberman Adds Saudi Arabia to His War List

Scowcroft Thrust into Public Criticizing Bush Iraq War Drive

Chaos in Washington, D.C.: Mayor Williams Loses Appeal

Congress hands President Bush the 'Fast Track' He Wants

Health-Care Cost-Cutting Threatens Lives

U.S. Special Operations Command Seeks Expanded Operations

United Airlines Hires Bankruptcy Lawyers

Warmonger John Bolton Provokes Outrage in Britain

Gambling Vultures Circles Over Bankrupt States

State Securities Officials Will Coordinate Investigation of Banks and Brokers

Lying LaRouche Prosecutor Named as Federal Judge in Virginia

From the Vol.1 No.23 issue of Electronic Intelligence Weekly

UNITED STATES NEWS DIGEST

'The Electable LaRouche' Candidate Wins Michigan Democratic Primary

See InDepth this week, for an report on the victory of LaRouche Democrat Kerry Lowry in the Democratic Primary on Aug. 6, for Michigan State House, by an overwhelming majority of 61. 3% of the vote. LaRouche Democrat Joseph Barrera polled 47. 7% in the 12th District primary for State Senate, on the same day. The candidates campaigned with the LaRouche Presidential campaign's mass leaflets, showing a sea-change is underway in the Democratic Party.

EIR To Issue Third Update on McCain and Lieberman Corruption

More than 30,000 copies of the EIR dossier on "The Real Scandal," exposing the organized crime linked duo, Senators John McCain (R-Ariz) and Joseph Lieberman (D-Conn), have been distributed in the United States. The first edition of the dossier appeared in the EIR of July 19, 2002.

On Aug. 6, EIRNS announced that the staff of EIR is putting together the next dossier on the Lieberman-McCain treason, which will focus on the links of both men to the filthiest elements in the so-called financier establishment. As already reported, Michael Steinhardt, the man who literally tried to rob the U.S. Treasury, is one key backer of Lieberman's political rise. He was, in 1991, a founding member of the Bronfman-led "Mega Group" of Zionist mafiosi billionaires.

McCain's financial angel— apart from his booze baron father-in-law— was Charles Keating, one of the biggest of the S&L looters of the 1980s and early '90s. Keating worked for 20 years for Dope, Inc. figure Carl Lindner, before setting up his own mortgage operation— with Lindner funding. Throughout the junk bond/S&L binge, Keating remained a closely held asset of Lindner and his circles. Recall from the underground bestseller, Dope, Inc., that, in 1975, Lindner had taken over United Fruit Company, as part of a consortium with Max Fisher and Fisher's Detroit real-estate partner Alfred Taubman. Along with the Milstein brothers, they ran United Fruit/United Brands as a major conduit for Dope, Inc. narcodollars into the U.S. The ties of Keating to notorious pirate Michael Milken will be described.

EIR will also reveal that Milken's predators were at the heart of AIPAC's effort, during the 1980s, to create more than 70 political action committees, that were buying off Congressmen by the droves. The Roundtable PAC, the Mid-Manhattan PAC, and the National PAC, were three of the biggest AIPAC-created committees, that were directly run by the Tisch family, Milstein of United Fruit, and Saul Steinberg. The 1982 creation of Democrats for McCain, to bankroll John McCain's first Congressional campaign, was one of these AIPAC creations.

Dick Armey Breaks Ranks— Attacks Iraq War

The first major defection from the Republican Party Congressional leadership, on the issue of the planned war against Iraq, occurred on Aug. 8, when Rep. Dick Armey (R-Texas) warned that an unprovoked attack against Iraq would violate international law, and would undermine international support for President Bush's policy of removing Saddam Hussein.

Armey is not only a Congressman, but the House Majority Leader, a leading conservative, and a well-known Bush ally; thus, his move carries immense implications. As Lyndon LaRouche predicted, when he launched his campaign to destroy the influence of Democrat Joe Lieberman, once Lieberman were defeated, ripple effects would be felt in the Republican Party, and a general shift in the governing combination would result.

As reported prominently in the New York Times on Aug. 9, Armey made his remarks on the same day that Iraqi President Saddam Hussein delivered a major speech, warning against U.S. aggression. Armey said the following to reporters in Des Moines, Iowa, during a campaign event: "If we try to act against Saddam Hussein, as obnoxious as he is, without proper provocation, we will not have the support of other nation states who might do so.... I don't believe that America will justifiably make an unprovoked attack on another nation," he said. "It would not be consistent with what we have been as a nation or what we should be as a nation. "

Armey said, if Iraq refused to allow international arms inspectors into the country, that would not merit military action. "In my estimation it is not enough reason to go in, that he does not allow weapons inspections," Mr. Armey said. "What if the French decided they wanted to inspect American military facilities?" Armey, who supported Desert Storm, said the current situation was different, and that basic principles of international law had to be respected. "[Saddam Hussein] has a right to hold dominion within his own national boundaries, as obnoxious as he is and as comical as he can be," said Mr. Armey. "He is what we in Texas know as a blowhard, he can't help himself. "

Lieberman Adds Saudi Arabia to His War List

Joe Lieberman, the Senator from "MEGA," told Fox-TV on Aug. 4 that the U.S. is going to have to consider attacks on the Saudis, and Syrians, as well as Iraq for links to terrorism. With the attacks on Saudi Arabia, Lieberman is exposed as solidly in the camp of such neo-conservative wackos as suspected Israeli agent, Richard Perle and the Paul Wolfowitz cabal.

Over the last week, because of the escalating activity of the Lyndon LaRouche Presidential campaign in exposing Lieberman and his sidekick, Sen. John McCain, the news is out in the open that McCain and Lieberman are running a "blackmail" operation against the White House, in coordination with circles backing Israeli war criminal Ariel Sharon, to force Bush into a Middle East war.

Lieberman's warmongering persona was in full display in the Aug. 4 interview with Fox's Tony Snow. Asked if the U.S. should directly attack Hamas in the Palestinian areas, Lieberman, whose backing for Ariel Sharon helped cause this bloodshed, responded that "Israel can carry that fight for us."

But Lieberman was not being moderate— he was simply saying that the U.S. should go to war against the rest of the Arab world, while Israel takes care of the Palestinians. Lieberman claimed, "support to Hamas [is] coming from Iran, Iraq, Syria, and, I fear, Saudi Arabia."

When challenged if he was "saying the Saudis are with the terrorists?" Lieberman replied: "I'm saying there's very ample evidence that, from Saudi Arabia, Hamas and other terrorist groups claiming credit for bombings ... including those that killed five Americans, have received money from Saudi Arabia.... That can't go on any more if there's going to be peace. We can't have normal relations with countries that do that."

Scowcroft Thrust into Public Criticizing Bush Iraq War Drive

Following Senate Foreign Relations Committee hearings last week on the potential consequences of, and need for, a war against Iraq, there have been an increasing number of calls, from both the pro-war and anti-war sides, for a formal Congressional vote. However, informed Washington sources considered the emergence of Brent Scowcroft, Chairman of the President's Foreign Intelligence Advisory Board (PFIAB) to be especially noteworthy.

Most strident was pro-war syndicated columnist George Will in his Aug. 9 piece, which asserts that it would be unconstitutional for President Bush to go to war without formal decisions in the House and the Senate. In addition, he noted, the President has to get that political approval to be able to wage the war. Clearly, as the Senate hearings, chaired by Joe Biden (D-Del) showed, such a debate need not move people against the war, as the proceedings can black out the opposition (see EIW , no. 22).

Nonetheless, there have been unusually loud voices speaking out against what would clearly be a disastrous adventure. Notable are statements publicized in the London press from Scowcroft (see this week's InDepth), and House Majority Whip Dick Armey (see item above.)

In response to this discussion, plus vigorous opposition from leading military circles, President Bush and his top cabinet officials have taken the tone of asserting that a decision for war has not been made, and could be extended into 2003. Indeed, in the assessment of Lyndon LaRouche, given the broad scope of domestic and international opposition to the war, it cannot be considered inevitable, despite the flight-forward drive of the utopians like Richard Perle.

Chaos in Washington, D.C.: Mayor Williams Loses Appeal

On Aug. 6, the D.C. Court of Appeals denied Mayor Anthony Williams' appeal of the Board of Elections and Ethics' ruling throwing him off of the ballot in the Democratic Party primary to be held Sept. 10. The Board ruled last month that it could not count any of the more than 7,000 petition signatures gathered by the Bishop family, because it could not determine if any of them were valid. At a hearing yesterday, lawyers for the Mayor argued that the Board had "acted lazily" in its ruling denying Williams a ballot position.

Meanwhile, the Board of Elections and Ethics has referred the petition forgery case to the U.S. Attorney and to the D.C. Corporation Council for criminal investigation and prosecution. So far, neither Mayor Williams nor his campaign manager is part of the criminal referral, but four petition gatherers are named. One of those named, recently told the Washington Post that it was nearly impossible to gather signatures for Williams in black neighborhoods in D.C.

A spokesman for Williams said that he will drop any further appeals, and will concentrate on organizing a write-in campaign.

Congress hands President Bush the 'Fast Track' He Wants

Just before leaving for the August recess, the conference committee working on reconciling the trade bills known as "Fast Track" which passed the House and the Senate, finally came to an agreement, and sent a bill to President Bush's desk. Bush was able to sign the bill, which had been stripped of the killer Senate amendment which would have forced the President to seek approval from the Congress if he negotiated agreements which changed anti-dumping laws. As it is, the President's "trade promotion authority" will allow him to present whatever treaties he negotiates, in "take it or leave it" fashion, to the Congress.

Health-Care Cost-Cutting Threatens Lives

According to the New York Times of Aug. 8, the Joint Commission on Accreditation of Healthcare Organizations has concluded that the low level of nursing staffing in U.S. hospitals contributed to 24% of cases of death or injury to hospital patients.

The report was released Aug. 7, based on a study of a computer database that included 1,609 reports of patient deaths and injuries since 1996. The argument of Health Maintenance Organizations (HMOs) has been that staff "streamlining" has had no impact on health-care provision. But, in fact, the takedown of facilities and staff for care delivery has been so great, that at present, more than 126,000 nursing positions are vacant in the extant hospitals— about 12% of the staff jobs (a number itself far below the ratio needed).

U.S. Special Operations Command Seeks Expanded Operations

According to the Washington Post of Aug. 3, Air Force Gen. Charles R. Holland, the commander of the U.S. Special Operations Command, met with Secretary of Defense Donald Rumsfeld Aug. 2, and proposed a series of dramatic new measures. These included a "dramatic expansion of the Navy's sea interdiction efforts, as well as a plan under which special operations troops would accompany foreign forces on combat missions." But most of the missions Holland proposed were "aggressive, unilateral, and behind the scenes," said an unnamed U.S. official familiar with the Holland-Rumsfeld meeting.

Holland told Rumsfeld that he is ready to begin executing the proposed missions, but he wants to be sure he has the political backing from the Bush Administration, and the legal approval needed to carry out the missions. The official said that Holland is concerned that Congress may not support ground-combat operations. Rumsfeld and other top officials have complained that there's been too little progress in the war on terrorism in recent months, and that the planning process "has been too rigid and stale." The Aug. 2 meeting between Rumsfeld and Holland is being taken as a sign that covert operations by special forces will increase in the coming months, as troops become available for new missions.

United Airlines Hires Bankruptcy Lawyers

United Airlines has hired bankruptcy lawyers, Cable News Network (CNN) reported Aug. 2. UAL, the second-largest airline in the United States, also announced further flight cuts, and, in a desperate attempt to get some revenue, has reduced its fares along with other U.S. airlines— despite the fact that U.S. airlines lost more than $1.4 billion in the second quarter. UAL filed for a $1.8 billion Federal loan guarantee at the end of June, and hasn't yet received an answer from the government.

However, some commentators say United still has large cash reserves, and filed for a Federal loan guarantee (which requires union and creditor concessions as a condition) only to create a "club" to force union givebacks.

Warmonger John Bolton Provokes Outrage in Britain

U.S. Under Secretary for Arms Control John Bolton, interviewed on British Radio 4's Today program Aug. 3, categorically declared that the U.S. objective is to topple Saddam Hussein, whether or not UN weapon inspectors are allowed in. Bolton declared: "Let there be no mistake— while we also insist on the reintroduction of the weapons inspectors, our policy at the same time insists on regime change in Baghdad, and that policy will not be altered, whether inspectors go in or not. "For good measure, Bolton added that he "certainly hoped" Saddam would be deposed within the year.

Bolton's remarks lit a fuse in Britain, the London Observer wrote Aug. 4, starting with the Foreign Office, which quickly moved to dissociate itself from his comments by issuing a statement on behalf of the Foreign Minister: "Jack Straw has said that the aim of our policy would not be regime change. "

Gambling Vultures Circles Over Bankrupt States

The gaming industry is now in high-gear to open the floodgates for legalized gambling of all sorts, according to the Washington Post of Aug. 5. Nearly 35 states have and/or are moving to adopt legislation to allow every kind of gambling imaginable. In the 1990s elected officials gambled and lost on the stock-market and "New Economy" bubbles as the means to feed state coffers, and now, refusing to face reality, they are turning to gambling proceeds as a new revenue source.

Harrah's Entertainment Inc., one of the country's largest casino operators, is promoting legalized gambling in Maryland, by circulating a "study" which purports to show that 3.4 million Marylanders travelled to other states to gamble. Conclusion: legalize it here and reap the benefits to fund your budget. Maryland's House Speaker Casper R. Taylor, Jr. (D-Allegany) was quick to jump at the marketing bait: "Hundreds of millions of ... dollars are going to other states to build their roads and schools," he said. Harrah is championing the push to legalize "racinos"— casinos at racetracks. Gary Loveman, Harrah's CEO gloats, "If gaming is liberalized in Maryland, or any state, we want [a] part of it. There's tremendous pent-up demand. It's a little like the end of Prohibition."

The article notes that "Voters in Tennessee, Nebraska, Arizona and Idaho" will have gambling initiatives on their November ballots, while Indiana has "loosened] restrictions on the state's billion-dollar riverboat casino industry." All these states have dramatic budget crises due to job shutdowns, and the stock-market collapse.

Common Cause plans to encourage full debate on the pros and cons of gambling. Its president, Scott Harshbarger, a former Massachusetts attorney general, argues "There is a very conscious strategy [by the gambling industry] to take advantage of vulnerable states and to ally with state officials who don't want to make tough decisions about taxes."

A 1997 EIR feature, "Legalized Gambling: Money Laundering for Dope Inc.," by John Hoefle, exposed the organized-crime control of gambling, and debunked the so-called "economic benefits" used to promote it.

State Securities Officials Will Coordinate Investigation of Banks and Brokers

Trying to cash in on New York State Attorney General Eliot Spitzer's $100-million settlement with Merrill Lynch, state securities officials, working through their national organization, the North American Securities Administrators Association (NASAA), formed a new task force to pool their resources and coordinate "12 to 15 investigations" into financial firms operating in their states which may have allowed conflicts of interest to distort investment advice.

Riding the wave of "let's catch the crooks" rather than acknowledge their own acceptance and toleration of deregulated banking, these state officials hope to bag a few bucks by "concentrating enforcement efforts on major investment banks and brokerage houses," Stateline.org reports. For example, Alabama, Georgia, Mississippi, and Indiana are targetting Lehman Brothers. They are leaving the Enron, WorldCom, etc., investigations to the SEC and Federal regulators. "The main role of the states is to provide grass-roots investor protections," said Brad Skolnik NASAA's chief enforcement officer and Indiana's securities commissioner. State officials have jurisdiction over these investment banks and their brokerage firms as they must be licensed by the states to operate within their borders.

Lying LaRouche Prosecutor Named as Federal Judge in Virginia

Henry Hudson, the former U.S. Attorney in Alexandria, Virginia, who carried out the frame-up of Lyndon LaRouche in the late 1980s, has been appointed by President Bush to the Federal bench in Richmond. The U.S. Senate confirmed Hudson's nomination Aug. 8, and Bush signed the appointment a few days later.

Hudson is a notorious liar and publicity-seeker; he was caught by a Federal bankruptcy judge in carrying out "constructive fraud" in the LaRouche case, and later, in 1995, he was caught lying in Congressional hearings on the Ruby Ridge shoot-out.

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